There is a growing trend in electric vehicle (EV) adoption, but the limited availability of charging stations is dissuading potential buyers. Nevertheless, small businesses can seize the opportunity to address this issue by installing EV charges in their parking lots, which can attract customers and increase profits.
According to a study by Consumer Reports (CR), retailers typically experience a four percent increase in foot traffic and a five percent rise in revenue when offering EV charging services. Moreover, a significant 89 percent of EV drivers make purchases while their vehicles are charging. Business owners can recoup the investment and installation expenses, which range from $4,400 to $10,600 per port for slower Level 2 chargers and $112,200 to $285,300 per port for fast chargers. Additionally, many retailers are eligible for tax credits which further reduce the financial burden.
The CR reports that additional financial incentives are available through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. The Infrastructure Investment and Jobs Act allocates $7.5 billion for establishing a national EV charging network through grants, while the Inflation Reduction Act offers tax credits of up to 30 percent for charger installations, capped at $100,000 per charger until 2032, particularly targeting non-urban or low-income areas.
The study recommends tailoring the choice of chargers to align with the duration customers typically spend at the store, a concept referred to as “right speeding.” For instance, fast-food stores with brief customer stays may prioritize fast charging, whereas department stores may find slower charging stations more advantageous.
Retailers can also experiment with different pricing models, including providing complimentary EV charging as a service, installing chargers in fee-based parking areas, or charging customers for the electricity used. The CR notes that some establishments employ a combination of these methods, offering complimentary charging for a limited period before implementing hourly charges.
Continued on source.
Read more about the study conducted by Consumer Reports.
Photo by Markus Spiske on Unsplash
